Lithium

Content maintained by Roy Towner

• Lithium
• Resources
• Accessible EDR
• JORC Reserves
• Exploration
• Production
• World Resources
• Industry Developments

Lithium (Li) is recovered from the mineral spodumene (Li₂O.Al₂O₃.4SiO₂) and lithium-rich brines.

It is used in a range of products such as ceramics, glass, batteries and pharmaceuticals. Lithium demand has expanded significantly in recent years as a result of its increasing use in rechargeable batteries for portable electronic devices such as mobile phones, computers and rechargeable power tools as well as in batteries and electric motors for hybrid and electric cars.

Lithium recovered from the production of spodumene from the Greenbushes mine in southwest Western Australia (WA) has been used in the production of specialty glasses, glass bottles, ceramics and ceramic glazes. Spodumene is a feedstock for the production of lithium carbonate used in the chemical industry. These chemical industry applications include greases, aluminium production, air conditioning systems and catalysts.

Australia’s Economic Demonstrated Resources (EDR) are estimated to be 483 kilotonnes (kt) of lithium in 2010, which is unchanged from 2009. The bulk of Australia’s lithium resources are in the Greenbushes’ spodumene deposit, 250 kilometres (km) south of Perth, WA. It is the world’s largest and highest grade spodumene deposit.  

Other EDR of lithium occur at Mount Marion about 40km southwest of Kalgoorlie, and Mount Cattlin, about 2km north of Ravensthorpe, both in WA. Resources at Mount Marion, which occur in a number of outcropping spodumene pegmatites, amount to be about 42kt, while resources at the Mount Cattlin spodumene deposit total about 63kt.

In 2010, Subeconomic Resources of lithium, all in the submarginal category and all in WA, total less than one kilotonne.

Inferred Resources of lithium total 90kt, which is unchanged from 2009, and are associated with Greenbushes and the Mount Cattlin and Mount Marion pegmatite deposits in WA.

All of Australia’s EDR of lithium is accessible.

Joint Ore Reserve Committee (JORC) Code reserves comprise total lithium in Proved and Probable Ore Reserves as defined in the JORC Code. In 2010, JORC Code reserves of 174kt accounted for approximately 36% of Accessible Economic Demonstrated Resources (AEDR). At Australia’s 2010 rate of spodumene production, lithium reserves in the JORC Code categories are adequate for about 18 years.

There are only a few companies exploring for lithium mainly in WA and Queensland (Qld) but no statistics are available on exploration expenditure.

According to the Western Australian Department of Mines and Petroleum, the Talison Lithium Limited’s’ Greenbushes operation produced 326 856 tonnes of spodumene concentrate in 2010, containing between 4.8% and 7.5% lithium oxide (Li2O).

According to estimates by the United States Geological Survey (USGS) which have been modified by Geoscience Australia for Australia’s resources, world lithium resources in 2010 totalled about 12 900kt. The resource data does not include Canada. According to the USGS, Chile holds approximately 7500kt, or 58% of the total world resources, followed by China with 3500kt, Argentina with 850kt, Australia with 483kt and Brazil with 64kt.

Lithium resources occur in two distinct categories, lithium minerals and lithium-rich brines. Canada, China and Australia have significant resources of lithium minerals, while lithium brine is produced predominantly in Chile, followed by Argentina, China and the USA. Lithium brines are the dominant feedstock for lithium carbonate production.

World production in 2010 was estimated by the USGS to be 25.3kt of contained lithium, excluding the USA production for commercial reasons. Based on the USGS data, Chile produced about 8.8kt to remain the world’s largest producer in 2010 followed by Australia, China and Argentina.

According to Talison Lithium Limited, global demand for lithium is expected to more than double from 2010 levels by 2014, mainly driven by increased consumption for lithium-ion batteries for use in mobile technology, energy grid stabilisation and electric vehicles. Lithium batteries are the preferred choice for electric car manufacturers over the nickel metal hydride batteries because of their higher power output, durability and cost.

Talison Lithium Limited produces two categories of lithium concentrates at the Greenbushes Lithium Operations in WA:

1. technical-grade lithium concentrates which have low iron content for use in the manufacture of, among other applications, glass, ceramics and heat-proof cookware; and
2. a high yielding chemical-grade lithium concentrate which is used to produce lithium chemicals that form the basis for manufacture of, among other applications, lithium-ion batteries for laptop computers, mobile phones, electric bicycles and electric vehicles.

The company does not produce lithium chemical products, selling lithium concentrate instead to customers for processing into lithium chemicals, primarily lithium carbonate.

In late 2009 and through 2010, demand for Talison Lithium Limited’s technical-grade lithium concentrates rebounded strongly following a slowdown in early 2009, particularly in the glass sector from traditional markets such as Europe, the USA and Japan. The company also experienced a substantial increase in demand for its chemical-grade lithium concentrates, particularly from Chinese lithium chemical producers for use in lithium-ion battery industries. Consequently, both the company’s chemical-grade plant and technical-grade plant have been operating at full capacity since July 2009.

Following completion of its Stage 1 expansion in December 2010, the total nameplate capacity at the Greenbushes operation increased to approximately 315 000 tonnes per annum (tpa) lithium concentrate. In early 2011, the company announced a further expansion to 740 000tpa lithium concentrate involving a new purpose built chemical-grade production facility at a cost of about $70 million. This plant is expected to be commissioned in the second quarter of 2012. In the six months ending 31 December 2010, Talison Lithium Limited mined 164 277 tonnes of lithium concentrate. The lower-grade spodumene is exported to China where it is converted into a range of lithium chemicals. The higher-grade spodumene is exported to Europe, Asia and the USA. The Greenbushes mine has a reported lithium mineral reserves of 31.4 million tonnes (Mt) grading 3.1% Li₂O and a combined Measured and Indicated Resource of 70.4Mt grading 2.6% Li₂O. Based in these lithium mineral reserves, the mine life has been extended by 10 years to 22 years.

Talison Lithium Limited was studying the possibility of building a 20 000tpa lithium-carbonate equivalent plant in Australia to produce battery-grade lithium carbonate at a capital cost of between $160 million and $200 million.

In September 2010, Galaxy Resources Limited commenced production from the Dowling Pit at its Mount Cattlin lithium tantalum mine (hard-rock spodumene) near Ravensthorpe in WA. In the December 2010 quarter, the company mined 74 310 tonnes of ore grading 1.02% Li₂0, and made its first shipment of 6500 tonnes of spodumene to China in March 2011. When in full production, the project will produce 137 000tpa of 6% Li₂O spodumene concentrate and 56 000 pounds of tantalite contained concentrate for an expected mine life of 16 years. Construction by Galaxy Resources of its lithium carbonate plant within the Yangtze River International Chemical Industrial Park in Jiangsu Province in China is expected to be commissioned in late 2011. This plant will have the capacity to produce 17 000tpa of battery-grade lithium carbonate. The Mount Cattlin deposit has a reported JORC compliant resource of 18.188Mt with an average grade of 1.08% Li₂O and 156 parts per million (ppm) of tantalum pentoxide (Ta2O5) containing an estimated 197 000 tonnes of Li₂O and 6.26 million pounds of Ta₂O₅ above a cut-off grade of 0.4% Li₂O.

Reed Resources Ltd and joint venture partner Mineral Resources Limited have completed a prefeasibility study into the production of battery-grade lithium carbonate from the spodumene concentrates produce from their Mount Marion lithium deposit, 40km southwest of Kalgoorlie, WA. The lithium carbonate production process would involve conventional sulphate roast-water leaching of spodumene concentrate followed by precipitation and purification of lithium carbonate. Both companies have received approval for the final mining proposal from the Western Australian Department of Mines and Petroleum, allowing construction of the minerals processing plant at Mount Marion. Mine production is expected to commence in the September quarter of 2011 at an initial rate of 240 000tpa of spodumene concentrate grading at 6% Li₂O, containing about 14 400 tonnes of Li₂O. The Mount Marion deposit consists of a series of shallow dipping, parallel sheets of spodumene-bearing pegmatites within mafic-ultramafic volcanic rocks. The pegmatite sheets are more than 20 metres thick. The deposit has a total contained Li₂O resource of 146 000 tonnes.